A former IBM executive who was considered a potential chief executive for the company yesterday admitted that he gave insider information to a hedge fund.
"I disclosed material non-public information to Danielle Chiesi, a friend who I knew worked at a hedge fund," Robert Moffat told a judge in New York. "I knew that the information I provided would be helpful to her in performing her job executing securities transactions."
The former vice president of IBM’s systems and technology group was charged under an investigation into the Galleon hedge fund, which also brought charges against executives from Intel and McKinsey. Former AMD chief executive Hector Ruiz was linked to the scandal, but not charged.
Moffat yesterday announced his intention to plead guilty, although his plea was not immediately accepted. He faces up to 25 years in prison.